Exhibit 99.1
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| FOR IMMEDIATE RELEASE | | | | | | Contact: Michael P. Donovan |
| | | | | | | mdonovan@HealthExtras.com |
| | | | | | | HealthExtras, Inc. |
| | | | | | | 301-548-2900 |
HEALTHEXTRAS REPORTS RECORD SECOND QUARTER RESULTS
Operating Income Up By 86% Over Prior Year
Company Reports Net Income of $5.7 Million
ROCKVILLE, MD, July 27, 2005 — HealthExtras, Inc. (NASDAQ: HLEX), a pharmacy benefit management company, today announced its financial results for the second quarter ended June 30, 2005.
Second Quarter Highlights
| | • | | Net income for the second quarter 2005 was $5.7 million or $.14 per share, a 39% increase over second quarter 2004 earnings of $4.1 million or $.11 per share. |
| | • | | Revenues for the second quarter 2005 totaled $177.3 million, a 55% increase over second quarter 2004 revenues of $114.2 million. |
| | • | | Over 4.4 million prescriptions were processed during the quarter. |
“We are pleased with the Company’s second quarter financial performance. The Company continues to perform in a manner consistent with our expectations for margins and earnings,” said David T. Blair, Chief Executive Officer of HealthExtras. “We believe that underlying performance trends reflect well on the operations of each of the Company’s business segments.”
Operating income for the three months ended June 30, 2005 increased to $8.8 million, an 86% increase over the $4.7 million from the same period in 2004. “During the second quarter we announced the results of the Mississippi procurement process and continue to be encouraged by sales momentum across all our market segments. At this point, we already have more than $150 million in new annual revenues under contract for 2006. In addition, we continue to pursue opportunities to accelerate our growth through select acquisitions,” added Mr. Blair.
About HealthExtras(www.healthextras.com)
HealthExtras, Inc., a pharmacy benefit management company, currently provides benefits to over three million members. Its clients include self-insured employers, including state and local governments, third-party administrators, managed care organizations and individuals. The Company’s integrated pharmacy benefit management services marketed under the name Catalyst Rx include: claims processing, benefit design consultation, drug utilization review, formulary management, drug data analysis services and mail order services. Additionally, the Company operates a national retail pharmacy network with over 55,000 participating pharmacies.
This press release may contain forward-looking information. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in HealthExtras’ filings with the Securities and Exchange Commission.
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Income Statement
(In thousands, except per share data)
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| | | For the quarter ended June 30, 2005
| | | For the quarter ended June 30, 2004
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Revenue (excludes member co-payments of $67,060 and $43,206 for the quarters ended June 30, 2005 and 2004, respectively) | | $ | 177,258 | | | $ | 114,201 | |
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Direct expenses | | | 157,323 | | | | 101,280 | |
Selling, general & administrative expenses | | | 11,133 | | | | 8,186 | |
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Total operating expenses | | | 168,456 | | | | 109,466 | |
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Operating income | | | 8,802 | | | | 4,735 | |
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Interest income | | | 537 | | | | 44 | |
Interest expense | | | (261 | ) | | | (138 | ) |
Other income | | | 25 | | | | 1,977 | |
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Income before tax | | | 9,103 | | | | 6,618 | |
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Income tax provision | | | 3,368 | | | | 2,495 | |
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Net income | | $ | 5,735 | | | $ | 4,123 | |
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EPS - basic | | $ | 0.15 | | | $ | 0.12 | |
EPS - diluted | | $ | 0.14 | | | $ | 0.11 | |
Weighted average common shares, basic | | | 38,348 | | | | 33,167 | |
Weighted average common shares, diluted | | | 41,061 | | | | 36,706 | |
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Financial statements follow:
HealthExtras, Inc.
Balance Sheet Information
(In thousands)
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| | | June 30,
2005
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Assets | | | |
Current assets: | | | |
Cash and cash equivalents | | $ | 73,079 |
Accounts receivable, net of allowance for doubtful accounts of $891 | | | 76,720 |
Income tax receivable | | | 753 |
Inventory, net of allowance for obsolescence of $25 | | | 392 |
Deferred charges | | | 1,608 |
Other current assets | | | 2,152 |
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Total current assets | | | 154,704 |
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Fixed assets, net | | | 9,318 |
Intangible assets, net of accumulated amortization of $3,713 | | | 21,374 |
Goodwill | | | 69,272 |
Restricted cash | | | 1,000 |
Other assets | | | 322 |
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Total assets | | $ | 255,990 |
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Liabilities and stockholders’ equity | | | |
Current liabilities: | | | |
Accounts payable | | $ | 62,565 |
Accrued expenses and other current liabilities | | | 3,859 |
Note payable | | | 5,000 |
Deferred income taxes | | | 967 |
Deferred revenue | | | 5,195 |
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Total current liabilities | | | 77,586 |
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Deferred income taxes | | | 4,998 |
Notes payable | | | 10,000 |
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Total liabilities | | | 92,584 |
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Stockholders’ equity: | | | |
Common stock | | | 385 |
Additional paid-in capital | | | 136,590 |
Accumulated other comprehensive income | | | 95 |
Retained earnings | | | 26,336 |
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Total stockholders’ equity | | | 163,406 |
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Total liabilities and stockholders’ equity | | $ | 255,990 |
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End of Filing
